Abu Dhabi Real Estate Transactions Soar 34.5% in Q1 2025, Hitting AED 25.3 Billion
Abu Dhabi recorded AED 25.3 billion ($6.9 billion) in real estate transactions across 6,896 deals in Q1 2025, marking a 34.5% increase from AED 18.82 billion ($5.1 billion) and 5,773 deals during the same period in 2024, according to the Abu Dhabi Real Estate Centre.
Abu Dhabi’s real estate sector has demonstrated remarkable growth in the first quarter of 2025, with total transaction values soaring to AED 25.3 billion ($6.89 billion), marking a 34.5% increase compared to the same period in 2024. This surge, reported by the Abu Dhabi Real Estate Centre (ADREC), underscores the emirate’s robust property market and its appeal to both local and international investors.
Transaction Breakdown
The first quarter witnessed 6,896 real estate transactions, up from 5,773 in Q1 2024. Buy and sell transactions accounted for AED 15.51 billion through 3,819 deals, reflecting a 26.7% increase in value and an 11% rise in volume year-on-year. Mortgage transactions also saw significant growth, reaching AED 9.8 billion across 3,077 deals, a 49% increase from the previous year.
Leading Investment Areas
Saadiyat Island emerged as the top area for real estate transactions, recording deals worth AED 5.6 billion. It was followed by Yas Island with AED 3.6 billion and Mohammed Bin Zayed City with AED 2.1 billion. Al Reem Island and Al Hudayriyat Island also saw substantial activity, each surpassing AED 1 billion in transactions.
Foreign Direct Investment Growth
The report highlighted a significant uptick in foreign direct investment (FDI) within Abu Dhabi’s real estate market. In Q1 2025, there were 384 FDI transactions valued at AED 1.582 billion, involving investors from 68 nationalities. This represents an increase from 58 nationalities in the same period last year, indicating growing international confidence in the emirate’s property sector.
Market Momentum from 2024
The robust performance in early 2025 builds upon the momentum from 2024, where Abu Dhabi’s real estate sector recorded a 24.2% increase in transactions, totaling AED 96.2 billion. This growth was supported by 28,249 transactions, including 16,735 sales valued at AED 58.5 billion and 11,514 mortgage deals worth AED 37.7 billion.
Expert Insights
Engineer Rashed Al Omaira, Acting Director-General of ADREC, stated, “These results highlight the strength of Abu Dhabi’s property market and its enduring attractiveness as a regional and international hub for real estate investment. The notable growth in transaction value and volume, alongside the rise in foreign investment, underscores the effectiveness of our regulatory frameworks and reinforces investor confidence in the market.”
Outlook
With ongoing projects and a favorable investment climate, Abu Dhabi’s real estate sector is poised for sustained expansion in the coming quarters. The emirate’s strategic initiatives to enhance transparency, diversify investment opportunities, and develop infrastructure continue to attract investors worldwide.
